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FOR RELEASE 7.00AM 8 APRIL 2008
SIRIUS EXPLORATION PLC (“Sirius Exploration” or “The Company”)
Sirius Exploration acquires and explores mineral properties
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2007 AND UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 31 SEPTEMBER 2007
Recent events Deadline of 31 March for concluding acquisition of Njahili means trading in the Company’s shares on AIM is restored without the acquisition having been concluded Additional £300,000 raised for working capital -
Current activities Outlook Strong management team In discussions with other companies on acquisitions Reviewing opportunities on further properties Determined to expand the company
The Annual and Interim Reports were published and posted to shareholders on 7 April 2008 and are available on the Company’s website www.siriusexploration.com
For further information:
Website: www.siriusexploration.com Sirius Share Price
Notes to editor:
Sirius Exploration
Sirius Exploration PLC (AIM: SXX) is quoted on the Alternative Investment Market of the London Stock Exchange Ltd in London. The Company acquires and explores mineral properties. The Company is exploring for copper and gold on its porphyry copper mineral properties located in Macedonia.
The Company has an agreement with Phelps Dodge (now a subsidiary of Freeport McMoRan Copper & Gold Inc) and has completed a drilling program at their exploration sites in Macedonia. Sirius Exploration has an agreement with Rio Tinto to utilise their Macedonian database to identify further exploration opportunities.
Freeport-McMoRan Copper & Gold Inc. Freeport-McMoRan Copper & Gold Inc. is the world’s largest publicly traded copper company. It completed the acquisition of Phelps Dodge Corporation in March 2007. The new Freeport-McMoRan Copper & Gold Inc. is an international mining industry leader with large, long-lived, geographically diverse assets and significant proven and probable reserves of copper, gold and molybdenum. Rio Tinto
Rio Tinto is a world leader in finding, mining and processing the earth's mineral resources. Major products include aluminium, copper, diamonds, energy products (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc and zircon), and iron ore. The Group's activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto comprises wholly owned subsidiaries (such as Borax, Comalco, Hamersley, Rio Tinto Coal Australia, Kennecott and Rio Tinto Iron & Titanium), partly owned subsidiaries (Coal & Allied and Palabora) and non-managed, (Escondida) and joint ventures (Grasberg) in which public shareholders, other companies or governments are partners. FOR RELEASE 7.00AM 8 APRIL 2008
SIRIUS EXPLORATION PLC (“Sirius Exploration” or “The Company”)
Sirius Exploration acquires and explores mineral properties
AUDITED RESULTS FOR THE YEAR ENDED 31 MARCH 2007 AND UNAUDITED INTERIM RESULTS FOR SIX MONTHS ENDED 31 SEPTEMBER 2007
CHAIRMAN’S STATEMENT
As reflected in the Managing Director’s report which follows we have continued exploration on our two prospects in Macedonia. Kadiica in particular shows great promise not only with the supergene copper blanket but also with new data which suggest a greater likelihood of significant gold deposits than previously known.
At the conclusion of my statement last year I said that we intended to look for acquisitions. Much of 2007 was spent reviewing potential acquisitions and eventually concluding an agreement to acquire Njahili Resources Ltd.
Whilst we had indications of funding being available for this transaction at the end of 2007, the current conditions in the financial markets mean that this funding became unavailable. Although the Njahili acquisition will not proceed in its current form we are still in discussions with Njahili and do not rule out some form of cooperation or joint venture in future.
We were faced with a deadline of 31 March to conclude the transaction with Njahili but if it went past this date there was a strong probability that Sirius would lose its AIM listing. Accordingly your board decided to re-list Sirius to ensure that the listing is retained. To support this we have raised an additional £300,000 for working capital purposes as described in the Directors’ report. This is in the form of an immediate subscription of £50,000 with the facility to draw a further £250,000.
Your company still has an extremely strong management team and, as previously announced, we are in discussions with other companies and reviewing other opportunities. Whilst there can be no guarantee that these will proceed this nonetheless provides clear evidence of our determination to expand the company.
In conclusion, thank you all for your support and I look forward to the further exploitation of our prospects in Macedonia while we continue to search for new opportunities.
Richard Poulden Chairman 8 April 2008
MANAGING DIRECTOR’S
OPERATIONAL REVIEW
Introduction
As previously reported we have acquired two target properties from the joint venture with Phelps Dodge (now a subsidiary of Freeport McMoRan Copper & Gold Inc), Kadiica and Osogovo. These are currently held by Phelps Dodge on trust for Sirius, subject only to their residual interest of a 1% Net Smelter Return pending full legal transfer.
Both Kadiica and Osogovo are well-defined porphyry copper systems within the fertile Srednegorie metallogenic belt. This contains, in Macedonia. not only the currently exploited Buchim copper-gold deposit but also Euromax Resources’ newly discovered Ilovitsa copper-gold deposit. Recognition of the zoned nature of these porphyry mineralisations with a lead-zinc-silver-enriched outer zone and cupriferous heart emphasises the potential of both our targets. Furthermore, recognition that some of the porphyry systems within this belt are of the copper-gold type (as opposed to the copper-only type) supports our conviction of the gold potential of the Kadiica target.
Kadiica
A large, low grade porphyry mineralisation has been defined here. Our immediate target is the supergene-enriched copper blanket. It has been identified beneath the greater part of Bukovic ridge. However, our primary focus is its richer elongated central spine. Re-examination of the aeromagnetic data suggests that this corresponds to a fault which would have enhanced local permeability and thereby encouraged the development of the leaching and re-deposition of copper during the weathering of the primary, low grade mineralisation.
Infill drilling will be undertaken at the southern end of this richer section of the blanket in order to establish continuity of the better grade material and also to give confidence to the siting of an exploration adit. The adit will then be driven to establish beyond reasonable doubt the continuity of the better grade material at least over the southern segment of the system.
We have data from Phelps Dodge’s examination of the supergene blanket material suggesting that 65% of the copper can be cheaply recovered by leaching. New drill samples will also provide preliminary material for leach testing. However a secondary purpose of the adit will be to provide a bulk sample for leach testing.
Finally, the adit will also permit examination of underground mining conditions and suitability for cheap underground extraction of the copper-enriched layer.
Although the supergene blanket is an attractive exploration proposition we think that the underlying porphyry mineralisation to be too low grade, at the current price of copper, to be considered a target. We have therefore no plans for any follow-up to the deep joint venture holes which established the presence of this large tonnage resource.
Field and geochemical data indicate that Kadiica is one of the copper-gold type porphyries. In consequence there could be either dispersed, low-grade gold enrichment (as at Buchim) or smaller but richer focused gold-rich deposits (epithermal as seemingly at Ilovitsa). Gold mineralisation in copper-gold porphyry deposits is more commonly multi-focal.
Petrographic studies coupled with examination of field data collected this season suggest there are indeed local gold enrichments from late fluids from the cooling porphyry. We also have new satellite data, which suggests the existence of additional gold anomalies yet to be explored on the ground.
During this season our local geologists found evidence of ancient workings (probably Roman) for gold on the lower slopes of Kadiica. We already knew that there were Roman workings across the border in Bulgaria and this now shows evidence on the Macedonian side as well. The significance of this is that it suggests the Romans were mining for gold over a wide area in the region.
Accordingly, the entire Kadiica area will be covered by a stream sediment geochemical programme to locate any other auriferous foci. However the two areas of highly anomalous gold in outcrop already reported will be the centre of our attention.
Our secondary target for immediate exploration is these two areas of anomalous gold. Geological mapping and petrographic studies will be undertaken as soon as is practicable. The ridge-top anomaly, where exposure is good, will be investigated by trenching and possibly later by some shallow drilling. The eastern anomaly, where the outcrop is obscured by soil cover, will first be better defined by a soil geochemical programme ahead of trenching. Drilling will only be undertaken when the nature and orientation of the mineralisation have been established.
The satellite study has identified a number of other areas around the flanks of the Kadiica porphyry where minerals characteristic of gold mineralisation occur at surface. These will be examined and sampled contemporaneously with the stream sediment programme. Co-incident stream geochemical and satellite mineral anomalies will then become our next generation of targets for follow-up. We feel that there is a significant possibility of exploitable gold mineralisation associated with this porphyry copper system.
Osogovo
The Osogovo porphyry does not appear to be one of the copper gold types, but it is certainly cupriferous. Indeed as at Kadiica a large low grade resource has been recognised here. The outer lead-zinc-silver zone does not lie within our claim. It is currently being exploited in two separate deposits at Sasa and Toranica. We have established relationships with the owners of both. Our joint venture drilling showed that the porphyry mineralisation extends almost to the SE border of the Osogovo claim. Hole PD-2 contains 155m of 0.1% Cu including 37m of 0.16%. Hole PD-4 contains 388m of 0.13% Cu including 40m of 0.3% and 10m of 0.35%. In each case the higher grade intercepts correspond to replacements of limestone beds (skarn) on the flanks of the porphyry. These are cupriferous on the Osogovo property but become Zn-Pb-Ag-enriched outwards to form the Sasa and Toranica deposits.
The breadth of the interface between the zones has not yet been investigated and is in need of confirmatory drilling. It may be quite sharp or there could exist an area of overlap rich in copper-zinc-silver-lead.
These data indicate the potential for rich polymetallic mineralisation in the SE corner of our Osogovo claim – a proposal that is enhanced by the impressive intercept of Historical Drill hole 7 previously reported.
The strongly magnetic nature of this skarn mineralisation in HH-7 and elsewhere led us to undertaking in 2006 a trial magnetic survey (3 lines) over the zone. This indicated that the skarn anomaly could indeed be detected at surface. We have therefore conducted a detailed ground magnetic survey in 2007. This shows a strong elongate magnetic feature coincident with the projected position of the mineralised limestone under the SE corner of the Osogovo claim.
Conclusion
In addition to our excellent precious and base metal targets at Kadiica and Osogovo we also continue to review exploration opportunities for joint venture or acquisition. Opportunities arrive regularly and are always being actively sought. We will continue to assess them.
Dr Nicholas Badham BA (Hons.Oxon)PHD, Chartered Geologist Managing Director 8 April 2008 Click here for the Interim Report published April 2008 Click here for the Annual Report published April 2008
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